From 30% financial inclusion to $543.3 million in revenue — the remarkable rise of Nigeria’s fintech revolution

 

Nigeria’s fintech sector has become one of the most transformative forces in Africa’s economic evolution. With the spread of internet access and the rise of smartphones, digital finance has redefined how Nigerians pay, save, and do business.

The journey began in 2012, when the Federal Government introduced the cashless policy to curb excessive cash circulation. However, fintech truly gained momentum after the Central Bank of Nigeria (CBN) redesigned the naira in December 2022 and placed strict limits on cash withdrawals.

Although the cashless initiative started a decade earlier, the naira redesign forced Nigerians to embrace digital transactions as physical cash became difficult to obtain. Before these policies, less than 30 percent of Nigerian adults used non-bank financial services. That has since changed dramatically. Today, Nigeria’s fintech revenue is projected to hit $543.3 million, a massive leap from $153.1 million recorded in 2017.

This policy-driven shift not only reshaped consumer behavior but also pushed millions toward mobile money platforms, cementing fintech’s role as the backbone of modern finance in Nigeria.

Nigeria’s Growing Dominance in Africa’s Tech Investment Scene

Nigeria now stands as Africa’s most attractive destination for technology investment. According to the Africa Tech Startups Funding Report, total investment into African tech startups exceeded $3 billion for the first time in 2022. Remarkably, Nigeria accounted for nearly two-thirds of that funding, up from $600 million in 2021.

Between 2015 and 2022, 383 Nigerian tech startups secured a combined $2.07 billion in funding. The surge began in 2020, when funded startups increased from 48 to 85. That number almost doubled to 161 in 2021, and by August 2022, another 107 had already raised capital — a record-breaking streak that reaffirmed Nigeria’s leadership in Africa’s digital economy.

Beyond Payments: The Human Face of Financial Inclusion

Fintech’s true story lies not just in data, but in the lives it changes. Across Lagos, Abuja, and countless towns, fintech platforms now serve as bridges between ambition and opportunity. The smartphone has become the new bank, enabling traders, students, and entrepreneurs to participate in the economy in ways previously unimaginable.

This revolution was powered by visionaries — entrepreneurs who refused to accept limitations. They built solutions for ordinary Nigerians, transforming financial inclusion from a concept into a lived reality.

Fintech, however, extends beyond payments. It is about the market woman who receives cashless payments daily, the farmer who finds fair prices through digital marketplaces, and the youth who can now access loans to grow their small ventures. Inclusion in this context is not charity — it is empowerment through access.

 

A Larger Ecosystem of Innovation

According to Segun Aina, Chairman of the International Digital Economies Association and President of the Africa Fintech Network, fintech should not be viewed narrowly as digital payments. “Fintech is a large ecosystem,” he said. “It touches every sector — from health and education to insurance and media.”

The FinTech Association of Nigeria, which Aina helped pioneer, now represents 23 sectors, including major global players like MasterCard, investors, regulators, and support service firms.

Yet, Aina acknowledged persistent challenges in achieving financial inclusion. Nigeria’s Financial Inclusion Strategy aimed for 80 percent inclusion by 2020, but by 2018 the country was still far from that goal. This shortfall led to a shift toward digital-first solutions, though over 14 million Nigerians remain outside the formal financial system.

“If technology does not involve everybody, if everyone is not included, the impact will not be fair,” Aina warned.

The Promise and the Challenges Ahead

Despite hurdles, the future of Nigerian fintech remains bright. Driven by a youthful population and widespread smartphone adoption, digital finance continues to deepen its roots.

“If you ask 10 young people today for their account details, seven or eight will give you OPay or Moniepoint,” Aina observed. With 165 million smartphone connections, Nigeria’s digital ecosystem now supports seamless financial transactions at scale.

The rise of digital-only banks and the average Nigerian maintaining multiple financial accounts show just how deeply fintech has penetrated everyday life.

Investment has also surged. In just five years, eight or nine African fintechs have achieved unicorn status — with several originating in Nigeria. “Given our population and opportunities, Nigerian companies are expanding across Africa,” Aina explained. Fintech revenue across the continent could reach $5 billion by 2030, with Nigeria taking a substantial portion.

 

Regulatory Shifts and the Path Forward

One of the most striking changes is in regulatory attitude. “Ten years ago, even five years ago, regulators were only beginning to pay attention,” Aina recalled. “Now, they are active partners, creating frameworks and supporting innovation.”

This cooperation between the public and private sectors has helped formalize fintech as a full-fledged industry. “Fintech has moved from being a niche to becoming an industry of its own,” Aina declared.

However, challenges persist. Millions of Nigerians still lack smartphones or stable internet access. Rural communities remain disconnected. Without addressing these gaps, inclusion remains partial.

Still, fintech continues to fuel economic empowerment, job creation, and national growth. It contributes to stability, security, and productivity by bringing more Nigerians into the formal economy.

To achieve deeper inclusion, innovation must be designed for the underserved — built with collaboration, guided by trust, and supported by sound policies.

 

Conclusion: From Policy to People

Nigeria’s fintech story is a lesson in transformation. From a time when less than 30 percent of adults had access to financial services, the country has built a thriving digital ecosystem admired across the continent.

This progress, driven by necessity and innovation, shows how technology can democratize opportunity. It also highlights the challenges that remain — to ensure that no Nigerian is left behind.

Fintech is no longer just a buzzword. It is a bridge to economic resilience, a catalyst for inclusion, and a testament to how a nation can turn policy into progress — and progress into prosperity.